Weekly News

Oil prices hit 3-month low as US rig count climbs

March 13,2017 04:45

U.S. drillers added oil rigs for an eighth consecutive week, Baker Hughes said on Friday, as energy companies increased spending to take advantage of a recovery in crude prices since the Organization of the Petroleum Exporting Countries (OPEC) agreed ...



By Jane Chung
| SEOUL

SEOUL Oil prices dropped to their lowest in three months on Monday despite OPEC efforts to curb crude output, dragged down as U.S. drillers kept adding rigs.Brent crude LCOc1 had fallen 35 cents, or 0.68 percent, to its lowest since Nov. 30 at $51.02 per barrel by 0231 GMT. It closed the previous session down 1.6 percent at $51.37. U.S. West Texas Intermediate crude (WTI) CLc1 declined 42 cents, or 0.87 percent, to its weakest since late November at $48.07 a barrel.U.S. drillers added oil rigs for an eighth consecutive week, Baker Hughes said on Friday, as energy companies increased spending to take advantage of a recovery in crude prices since the Organization of the Petroleum Exporting Countries (OPEC) agreed to cut output. [RIG/U]

OPEC and other major oil producers including Russia reached a landmark agreement late last year to rein in production by almost 1.8 million barrels per day (bpd) in the first half of 2017.Overshadowing the curbs, crude inventories in the United States, the world's top oil consumer, surged last week by 8.2 million barrels. [EIA/S]

"With the market still digesting the big increase in inventories, oil prices are likely to remain under pressure today," ANZ bank said in a note. Hedge funds and other money managers cut their net long U.S. crude futures and options positions in the week to March 7, according to data from the U.S. Commodity Futures Trading Commission (CFTC) on Friday.

Michael McCarthy, chief market strategist at Sydney's CMC Markets, said markets would be dominated by expectations that the U.S. Federal Reserve is set to hike interest rates this week.A rise in U.S. rates would likely buoy the dollar, making greenback-denominated oil more expensive for importing countries."The week ahead is packed with potentially market defining releases," said McCarthy. "However, the key to market performance this week is the response to the U.S. lift in rates." (Reporting by Jane Chung in Seoul; Additional reporting by Keith Wallis in Singapore; Editing by Joseph Radford)

India gold recycling plan fails to tempt households
MUMBAI India's ambitious plan to recycle thousands of tonnes of gold lying idle in temples and households looks to have foundered on concerns over high costs and slight returns, in a blow to government hopes of cutting imports of the metal.

Majors exiting Canada's oil sands acting in own interest: Trudeau
HOUSTON Canadian Prime Minister Justin Trudeau on Friday dismissed a recent string of major oil companies selling their holdings in the heavy oil sands of Western Canada and moving investments to shale fields.

Commodities mark worst week in months amid glut, China drag
MANILA Global commodities from oil to metals and grains were on course to post their steepest weekly declines in months on Friday as the recent rallies in the asset class showed signs of fatigue, pressured by a glut and tepid demand from top consumer China.

Russia,United States,Michael McCarthy,US,GLOBAL,OIL,Energy Markets,Western Europe,Crude Oil,Energy (Legacy),Market Reports,Corporate Events,Oil and Gas (TRBC),Refined Products,English,Government Borrowing Requirement,Europe,Middle East,Commodities News (3rd Party),United Kingdom,Reports,United States

Share this article

Related videos

Oil prices decline amid rise in US drilling activity
Oil prices decline amid rise in US drilling act...
Low Oil Prices to Continue to Plague Industry for Next 3 Quarters
Low Oil Prices to Continue to Plague Industry f...

DON'T MISS THIS STORIES